Over one third of people could be missing out on annuities deals

According to a recent press release, 38% of people are not taking advantage of the full range of annuity options that are available to them, meaning that they could be missing out on the perfect deal for them. Make sure you get the best advice on the annuities open market and get the greatest return from your savings by contacting our retirement options experts.


Warning over private pension values


Three-quarters of Britons are retiring on incomes of just £2,000 a year or less from their private pensions, research has shown.


Nine out of 10 people who retired between 2004 and 2009 had accrued a pension pot worth less than £50,000, while 77% had saved less than £30,000, according to annuity specialist Partnership.

The group said at current annuity rates, a pension pot of £30,000 would convert into an annual income of just £2,000 a year.

Even once the basic state pension is included, single people will still have a retirement income of just £7,000 a year, while couples will receive around £10,100. In both cases this is significantly less than the current level of average earnings of around £26,000.


The group warned that one in four pensioners currently lives in poverty, and the situation could get worse unless people start saving more for their retirement.


Philip Brown, head of retirement products at Partnership, said: “The figures demonstrate that, put simply, people are not investing anywhere near enough for their retirement years. The data reveals that barely one in 10 people have a non-state pension pot of over £50,000.


“And with well over two-thirds of all of those in the post-50 age group having less than £30,000 in an annuity – which at today’s rates would typically give an annual income of just £2,000 a year, or £40 a week – the burden on an already heavily stretched state is going to be massive.”


The group also found that only 38% of people were taking advantage of the so-called open market option when they bought an annuity.


The open market option enables people to buy an annuity, which is used to convert their pension pot into a retirement income, from any provider in the market, meaning they can shop around for the best rate.


Partnership analysed figures from the Association of British Insurers.


See the full article at: http://www.google.com/hostednews/ukpress/article/ALeqM5iMZBQIvB8EVwVMJ-aso-HjXRNHlA